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Zoom Communications, Inc. (ZM) Stock Analysis

SellModerate Confidence

Technology · Software - Application

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through... Read more

$78.11+5.9% upside
Score 6.1/10Target $82.73Reward/Risk 0.5:1

TrendMatrix rates Zoom Communications, Inc. (ZM) as Sell with moderate confidence. The stock trades at $78.11 with +5.9% upside to the $82.73 price target. Overall score: 6.1/10 across 10 analysis dimensions. Reward/risk ratio: 0.5:1.

Passes 2/4 gates (clean insider activity, no SEC red flags). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

Val6.3Qual7.8Grw6.9Mom4.3Sent6.7Ins2.8Peer6.3Tech3.7Risk7.36.1OVERALL

Investment Thesis

+ V7 quality resilience bonus: +0.2 (Q=7.8 in RISK_OFF)
+ Sector modifier (): +1.2
+ Strong earnings beat streak (4/4)
- Thin upside margin: 5.9%
- Insider selling
- Below 200-day MA

Fundamentals

P/E (TTM)12.4
P/E (Fwd)12.4
Mkt Cap$22.6B
EV/EBITDA11.9
Profit Mgn39.0%
ROE20.3%
Rev Growth5.3%
Beta0.97
DividendNone
Analysts39
Frequently Asked Questions
Is ZM stock a buy right now?

TrendMatrix rates Zoom Communications, Inc. (ZM) as Sell with moderate confidence. Score 6.1/10.

What is the ZM stock price target?

Take-profit target: $82.73 (+5.9% upside). Reward/risk ratio: 0.5:1. Stop-loss: $68.58.

What are the risks of investing in ZM?

Thin upside margin: 5.9%; Insider selling; Below 200-day MA.

Is ZM overvalued or undervalued?

Zoom Communications, Inc. trades at a P/E of 12.4 (forward 12.4). TrendMatrix value score: 6.3/10. Verdict: Sell.

What do analysts say about ZM?

39 analysts cover ZM with a consensus score of 3.8/5. Average price target: $97.

What does Zoom Communications, Inc. do?Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the...

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.

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53 NEUTRAL
20d<50d<200dGOLDEN CROSSSupp $70.70Res $80.25

Price Targets

$69
$83
Upside+5.9%
Reward/Risk0.5:1

Position Sizing

ConvictionNONE
Suggested %0.5%
Max %1%
RegimeRISK_OFF

Risk Alerts

! MOMENTUM:4.3<5.0
! ASYMMETRY:0.6<2.0
Suitability: Moderate
Insider activity: OK
No SEC red flags
Momentum 4.3<5.0
Risk/Reward 0.6<2.0